The National Association of Realtors this month agreed to a $400 million settlement that could drastically reshape the process of buying and selling a home.
For decades, a 6% commission has been standard, paid by the buyer, and split between the buyer's and seller's agents.
It could add thousands to home prices, as sellers needed to make more to cover those costs.
Now, that commission isn't more or less locked at 6%.
This is a complicated settlement, and we're still learning more about it, but here are the three key takeaways.
  First, commissions won't be automatically attached to properties. Instead, buyers and sellers can negotiate fees with their agents – if they choose to use one at all. In Pennsylvania, broker agents already had to sign agreements to work in the best interest of buyers, but now, that will be a nationwide standard.
  Second, home prices could drop, depending on whether commissions drop. Sellers could face lower fees, meaning they can sell properties for less.
  Finally, competition now reigns supreme, but with it comes increased complication.
  We spoke to several realtors who say there's still lots to learn about this settlement, and they're still going over the ins and outs of the deal.
However, it certainly marks a shift in the real estate business.
Marsha Marsh, who has sold real estate for nearly 30 years, says in the last decade, Erie has seen an increase in agents and a sharp dip in available properties.
As the business becomes more competitive, we could see a reduction in agents, more in line with the number of properties.
She says the settlement will likely make buyers and sellers more aware of their rights and opportunities, but it's up to them to use the options wisely.
"I think it will change the market a bit, yes," Marsh said. "When I was president in 2010 of the Greater Erie Board of Realtors, there were 1300 listings, and there were fewer than 400 agents. Now, in 2024, there are more than 700 agents and fewer the 300 residential listings, so you can see what has happened to the market."
  Marsh says among the best things any prospective buyer or seller can do is get informed. Do your homework, and read up on process of buying and selling homes. An uninformed person is always at a disadvantage.